Businesses and Business Owners:
There are new regulations regarding deductions for certain state and local income taxes.
On November 9, 2020, the The U.S. Department of the Treasury issued a press release discussing the Treasury and the IRS’s proposed regulations “… clarifying that businesses structured as pass through entities may deduct certain state and local income taxes similar to C corporations.” These regulations “provide certainty to individual owners of partnerships and S corporations in calculating their SALT deduction limitations.”
Read the press release and Notice 2020-75.